EBIT of $29m in 1H18 was as expected, and similar to the prior two halves. We expect a similar result in the current half. However, our focus is on FY19 and beyond. Revenue consistency and steady 6-8% shipbuilding margins in the US, combined with an expected uplift as commercial work drives greater workloads through the Australian and Philippines shipyards, should see strong growth next financial year. With medium term performance largely underpinned by a $3.4b order book and large longer-term opportunities, we remain positively disposed. Buy maintained on a $2.10 blended valuation.
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